Holiday prices could soar next year, warns Ryanair boss

As 2022 bookings surge, there will be ‘about 20 per cent less short-haul capacity in Europe’

Ryanair chief executive Michael O’Leary

Holiday and flight prices could be “dramatically higher” next year due to a combination of reduced flights and increased demand, warned Ryanair’s chief executive Michael O’Leary.

Speaking to The Sunday Times, O’Leary said: “I think there will be a dramatic recovery in holiday tourism within Europe next year. And the reason why I think prices will be dramatically higher is that there’s less capacity.

“Take out Thomas Cook (6 million seats), Flybe – (8 million seats), Norwegian (nearly 24 million seats) — Alitalia’s reducing its fleet by 40 per cent. There is going to be about 20 per cent less short-haul capacity in Europe in 2022 with a dramatic recovery in demand.”

Ryanair has been reducing prices across the board this winter, said O’Leary, to “grab market share everywhere”. The airline has recently launched a raft of new routes for winter 2021/22 with prices from as little as £19.99.

Last month it was reported that holiday companies are seeing a surge in bookings for 2022 holidays, with travel website Host Unusual seeing enquiries up by 74 per cent on last year, and UK site Independent Cottages saying 25 per cent of their enquiries this summer were for 2022 bookings.

Host Unusual’s founder Alex Wilson said: “A year ago the emphasis was trying to find a much-needed last minute post-lockdown break, whereas this year it’s all about getting booked in early to avoid disappointment”.

A further surge in international travel bookings is expected if the UK’s traffic light travel system is scrapped in the next few weeks, as is being reported by several news outlets.

The news comes on top of fears that inflation will contribute to rising holiday prices - figures are expected this week showing that inflation rose sharply over the last month, in a trend set to continue for several months.

In July, O’Leary predicted a 20 per cent shortfall in seat supply “across the next two to three summers”.

He also suggested environmental taxes would add to the cost of holidays in the coming years, saying: “There will be a material shortfall in short-haul capacity and that, and environmental taxes, will increase fares.”